Government should Listen to What Industry is Saying, The tourism tax model unfairly imposed the burden of tax collection on registered hotels

Hotel operators: Tourism tax model unfair

PETALING JAYA: Major hotel groups have submitted a memorandum to the Government to voice their concerns over the burden to collect tourism tax from Aug 1.

In a joint memorandum to the Finance Ministry, Customs Depart­ment, and Tourism and Culture Ministry, they said the tourism tax model unfairly imposed the burden of tax collection on registered hotels.

Malaysian Association of Hotels president Cheah Swee Hee said registered hotels would effectively be “tax collectors” responsible for collecting and paying the tax to the Government.

“It is not fair and equitable as it does not appropriately capture all participants in the marketplace nor does it tax equally the participants that are subjected to the tax,” said Cheah in a joint statement yesterday.

He said under the current model, hotel operators that have registered with the Tourism Ministry were automatically included in the scope of tourism tax.

Cheah said less than 15% of accommodation providers in Malaysia were registered with the ministry.

He said there were 3,126 registered accommodation providers while 6,452 were unregistered and another 11,698 operators provide accommodation through Airbnb.

Malaysian Association of Hotel Owners president Tan Sri Teo Chiang Hong said the industry only managed to achieve a 35% to 40% occupancy rate in recent years.

The tax would create an uneven playing field and encourage tourists to seek unlicensed hotels.

Malaysia Budget Hotel Associa­tion president PK Leong said the tax will burden locals who were already struggling with difficult economic conditions.

The tax rate is charged on a per-room, per-night basis.

The rates are RM20 for five-star accommodations, RM10 for four-star, RM5 for one-to-three star and RM2.50 for non-rated accommodations, including budget hotels.

Read more at http://www.thestar.com.my/news/nation/2017/06/09/hotel-operators-tourism-tax-model-unfair/#IwHot31f7FztHUKw.99